Celsius became a bankruptcy in July 2022, and Celsius clients lost access to assets worth $ 4.7 billion. The founder himself managed to remove $ 8 million.
The federal court in New York punished the founder and former CEO of Celsius Cryptform, Alex Mashinsky in 12 years in prison for fraud with security and goods. This was reported by the US Ministry of Justice’s press service.
The investigation noted that Mashinsky customers had to do with Celsius’ financial condition, which promotes the platform as “the safest place for cryptocurrency”, and manipulates the Cel token market value. His actions lead to billions of user losses.
According to the prosecutor’s office, Celsius encouraged customers to “leave the banks” and move their crypto acting on the platform, promising high income.
Machinsky personally announced the platform, misleading users about the profitability, the company’s investment and liquidity.
To increase the artificial course of CEL, Celsius management spent hundreds of millions of dollars in its ransom in the open market, including the use of customers’ funds themselves. Because the public has denied his own token sales, though he sold it at least $ 48 million.
Celsius announced the losses in July 2022, and Celsius’ customers lost access to properties for 4.7 billion dollars. The founder himself managed to remove 8 million dollars.
In addition to the prison term, Masha was also obliged to pay a fine of $ 50 thousand and confiscated nearly $ 48.4 million. After the release, it has been under supervision for three years.
Celsius Network LLC -Cryptocurrency platform, founded in 2017, which offers users’ income (“awards”) for storing cryptocurrencies, loans that are secured by digital assets and storage services. Celsius was positioned himself as “the safest place for your crypt” and called users to “leave banks”.
In 2022, the company faced a liquidity crisis and suspended funding. On July 13, 2022, Celsius filed an application for losses, leaving $ 4.7 billion ownership of hundreds of thousands of users who were not accessible.
Alex Mashinsky is an American businessman of Ukrainian origin, founder and former CEO Celsius Network. Prior to this, he was known as one of the VOIP inventors of VOIP technology (Internet calls) and had experience in many startups.
As the head of Celsius, Mashinsky actively promoted the platform as a reliable alternative to banks, personally attracting depositors with promises of high income and security.
Remember that in 2022, Bitcoin reached a record of 69 thousand dollars, lost money by 60% of the cost. The impetus for collapse was the large crypto condant of the Celsius network this week frozen the removal of funds, which refers to the “extreme” market conditions. As such, 1.7 million customers cannot buy their owners.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.